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Performance Review Opportunity Often Squandered

BY: MICHAEL STERN December 06, 2006


This time of year breeds many cringe-worthy moments – from overplayed Christmas Muzak to crushingly dull office parties. But the worst moment of all may be your company’s annual round of performance reviews.

These days many organizations make a big deal out of performance reviews, but few take them as seriously as they should. Very few executives have been trained in conducting frank and fruitful reviews, and no one ever has enough time to prepare for them properly.

The result: the same thing that happens when a 13-year-old’s parents force him to visit Santa, just to complete the family photo album. You get a painful, forced conversation between two people who would rather be somewhere else. And the interview rarely goes near the key question of whether the person on the hot seat has been naughty or nice this year.

The dismal state of performance reviews is a shame, because they can and ought to be essential management tools for motivation and development. The key reason that they are so inefficient – and commonly loathed by both sides – is that few executives know how to conduct performance conversations.

Consider a candidate I worked with recently for an executive-search assignment. My client was looking for a senior executive in a post where interpersonal skills are essential.

Nick was the leading candidate. He had all the qualifications – on paper and in person. Except for one quirk: he could be pretty long winded and would use a hundred words where ten would do just fine. The first time it happened, I made a mental note; when my client mentioned it too, I knew we had a problem.

I sat down with Nick and brought up this trait. To my surprise, Nick said he had never before heard this type of feedback. His previous employers, I surmise, decided it was easier to tolerate his idiosyncrasies than risk an awkward conversation about his shortcomings.

I believe many bosses fall into that camp: they don't know how to hold difficult conversation on performance questions. Giving constructive feedback is an art, and many bosses either do it badly – or avoid the entire discussion.

The result: a lot of people work in a vacuum, never sure whether what they are doing is appreciated or not. That’s exactly why performance reviews are so important, and why more executives should learn how to give feedback that is constructive, respectful and effective.



Here are a few ways to get started.

1. Remember that a performance review is not just about bad conduct. Keep a positive tone throughout. Believe it or not, most people want to be made aware of their deficiencies, but it should be done in the context of supporting and strengthening what they already do right.

A good way to couch your feedback, for instance, is not to say, “You're doing a lousy job,” but to send a message that says, “I know your work on other projects & I think you're capable of doing a much better job in this area. And I can help you.”

2. Start with praise. People will respond more readily to criticism if you begin by citing the good things they have done. (If you're having trouble finding good things to say about them, maybe they shouldn't be there at all.)

3. Prepare properly. You should have a clear plan for improvement for every employee whom you review – as well as a timeline for improvement.

My feeling is that unless you offer your employees two or three specific areas of development, you haven't given it enough thought. And that means you're wasting a golden opportunity for performance improvement.

4. You don't need all the answers. You can lay out a critique of the employee’s performance, offer suggestions for improvement, and then encourage them to consider their own solutions. Ask how they think they can get better. Give them a chance to research courses or other resources that could help them improve.

Giving people control over their development usually results in greater engagement in the process, more sustained change and a stronger bond between boss & subordinate.

5. There should be no surprises at a performance review. If your discussion of employees’ strengths and weaknesses comes as a shock to them, then someone hasn’t been doing a good job of ongoing supervision and providing feedback.

Maybe the best first step in conducting performance reviews is to review the performance of that manager in the mirror.